The US lost 254,000 private sector jobs from August to September 2009 on a seasonally adjusted basis, according to the private sector ADP National Employment Report, which was released today. The estimated change of employment from July to August was revised by 21,000, from a decline of 298,000 to a decline of 277,000. In a third estimate of GDP (gross domestic product) in the second quarter issued by the US government, the contraction was less than previously estimated.

The US Department of Labor will publish its monthly employment report on Friday.

ADP says September’s employment decline was the smallest since July of 2008 and employment losses have diminished significantly over the last two quarters. Nevertheless, employment, which
usually trails overall economic activity, is likely to decline for at least several more months, with losses continuing to diminish.

September’s ADP Report estimates nonfarm private employment in the service-providing sector fell by 103,000. Employment in the goods-producing sector declined 151,000, with employment in the manufacturing sector dropping 74,000, about the same as last month.

Large businesses, defined as those with 500 or more workers, saw employment decline by 61,000, while medium-size businesses with between 50 and 499 workers declined 93,000.

Employment among small-size businesses, defined as those with fewer than 50 workers, declined 100,000. Employment losses among small-size businesses have diminished in each of the last six months.

In September, construction employment dropped 73,000. This was its thirty-second consecutive monthly decline, and brings the total decline in construction jobs since the peak in January 2007 to 1,632,000. Employment in the financial services sector dropped 19,000, the twenty-second consecutive monthly decline.

US GDP

The US Bureau of Economic Analysis said today that real gross domestic product -- the output of goods and services produced by labour and property located in the United States -- decreased at an annual rate of 0.7 percent in the second quarter of 2009, (that is, from the first quarter to the second quarter), according to the "third" estimate released today. In the first quarter, real GDP decreased 6.4 percent.

The GDP estimate released today is based on more complete source data than were available for the "second" estimate issued last month. In the second estimate, the decrease in real GDP was 1.0 percent.

Investment in equipment and software (mainly software) was revised up based on new Census Bureau data.